HSBC keeps China at arm’s length

The bank’s decision to keep its headquarters in London signals it will push ahead with its pivot to Asia but limit exposure to China’s markets and regulators.

HSBC’s 10-month long identity crisis is finally over not only has it decided to remain a London-headquartered bank, it has also pledged to cease periodically navel-gazing about the matter.

The reaction within HSBC and among its peers and clients was agreement and relief, as the alternative may have crippled decision-making with red tape. Investors seemed pleased too, with HSBC's share price in Hong Kong closing up 4.47% on Monday at HK$50.25 and...